Gold Fields mine to cut over 1500 jobs

Mining company Gold Fields has announced its plans to retrench more than 1500 at its South Deep mine, west of Johannesburg, adding to the bloodbath of job losses in the mining sector.

In a statement, the company says around 1100 permanent employees, and 360 contractors, could be affected by the restructuring.

The company says that the south deep mine has had a number of operational challenges which has led to a financial loss.

The company’s spokesperson Sven Lunsche told POWER News that the company has been losing roughly R100 million every month.

“We know it’s a hard step to take and it will affect about a quarter of our workforce but if we don’t do this now then the longer sustainability of the mine, and with it the other 4500 jobs, could potentially be at risk,” explains Lunsche.

#Goldfields: Section 189 notices will be served on two trade unions, the National Union of Mineworkers and UASA. This will be followed by a 60-day consultation process. The Minister of Mineral Resources has been informed of these retrenchments.

Lonmin is also planning to undertake 12 600 retrenchments over the next three years.

The mining industry is under severe pressure and is cutting jobs due to a number of reasons, including the age of South Africa’s mines, the depth and operational costs as well as the price of metals which has for a long time been on a downward trajectory.